The aim of the course is to acquaint students with ways of using accounting information in order to prepare and make managerial decisions in business entities. Students will be provided with a theoretical basis for solving specific business problems by becoming familiar with cost terminology, cost behavior and cost management methods.
1. Introduction to cost terminology. The concept of costs; Direct and indirect costs; Variable and fixed costs; Total and unit costs
2. The impact of inventory valuation methods on profit. Full costing; Variable costing; Comparison of inventory valuation methods
3. Standard cost accounting. Determining standard costs; Deviations from standard costs
4. Application of cost accounting by tasks and processes. Application of cost accounting by jobs; Application of cost accounting by processes
5. Cost-volume-profit analysis. Analysis and relationships of costs, volume and profit; Breakthrough
point; Target profit; Margin of safety
1. categorize types of costs and argue their role in business decision-making,
2. prepare an income statement using the full and variable costing methods; compare the value of inventories using the full and variable costing methods,
3. apply the standard cost accounting method; calculate deviations from standard costs and examine the causes of deviations,
4. identify the basic differences between costing by jobs and costing by processes; conclude which business entities benefit from a particular calculation,
5. calculate the break-even point, target profit and margin of safety; based on the calculation, recommend the optimal production mix
